Market Sizing - Digital Advertising: US

Delivered March 28th, 2018. Contributors: Ashley N. and

Part

01

of one

Part

01

Market Sizing - Digital Advertising: US

The U.S. market size of digital advertising is about $49.74 billion for local advertising, and about $33.26 billion for national advertising. For the North American segment as a whole we further estimate that the market size for digital advertising at the national level is around $35.156 billion, and around $52.734 billion for local advertising. These figures are for 2017.

In order to locate an answer to your question, we relied on industry reports, market reports, and trusted media sources to gather figures that could be used to triangulate the digital ad spend market size broken down by the local and national advertising segments. We have relied on some data provided in your attached report to achieve these triangulations. Below, you will find a deep dive of our findings!

Local digital ad spend in the u.s.

According to a report published by BIA/Kelsey, local ad spending in the U.S. was $140.9 billion in 2017, of which 35.3% was on digital advertising. This equates to a market size of $49.74 billion (or, 35.3% of $140.9 billion).

NATIONAL DIGITAL AD SPEND IN THE U.S.

According to Statista, total ad expenditure in the U.S. in 2017 was $206.77 billion. eMarketer offers a slightly lower total ad expenditure at $205 billion. According to the Worldwide Ad Spending report, the digital ad segment made up 40.5% of total ad spending in the U.S. in 2017. This equates to a total of about $83 billion in total digital ad spend (or, 40.5% of $205 billion).

To isolate the digital ad spend at the national level, we subtracted the local digital ad spend from the total digital ad spend, assuming that any non-localized ad spend would then be nationally focused. This gave us a market size of $33.26 billion (or, $83 billion - $49.74).

north American market size

Since this research was readily available for the most part, and you noted during the chat session that you were also interested in the North American market size as a whole, we decided to take a look at some research to see if we could also find this market size for you

According to the Wordwide Ad Spending report North America had a total digital advertising spend of $87.89 billion in 2017. Based on our research above, the U.S. has around a 94.4% share of the North American advertising market (or, $83 billion*100/$87.89 billion).

After conducting some research through industry reports, market reports, and trusted media sites, we did not locate any figures showing the differences in local versus national advertising for this region. However, since the U.S. makes up such a significant portion of the North American market, we used some data we collected from our U.S. research as a proxy to help estimate some figures for North America as a whole.

As noted above, the U.S. spend on nationally focused digital advertising is $33.26 billion, and $49.74 billion for local. These represent about 40% and 60% of the market, respectively (or, $33.26 billion*100/$83 billion; $49.74 billion*100/$83 billion). When these percentages are applied to the total digital advertising market size in North America, the national market size is around $35.156 billion, while the local market size is around $52.734 billion (or, $40% of $87.89 billion; and 60% of $87.89 billion).

CONCLUSION

In closing, we have provided several key figures surrounding the national and local digital advertising spend within the U.S. and North America. In doing so, we have relied on existing data to triangulate these figures where they were not readily available.